Team News Riveting
Raipur, December 25
Fourteen state governments including Chhattisgarh have offered to sell securities by way of an auction for an aggregate amount of Rs 18,604 crore.
The Chhattisgarh government plans to sell six-year dated securities in the form of stock to the public by auction for an aggregate amount of Rs 1000 crore, a notification of Reserve Bank of India (RBI) said. Securities would be issued for a minimum nominal amount of Rs 10,000 and in multiples of Rs 10,000 thereafter.
The auction will be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) system on December 29, 2020 (Tuesday). The Government Stock up to 10 per cent of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions subject to a maximum limit of 1 per cent of its notified amount for a single bid per stock as per the Scheme for Non-competitive Bidding Facility.
Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on December 29, 2020 (Tuesday).
The yield per cent per annum expected by the bidder should be expressed up to two decimal points. An investor can submit more than one competitive bid at same/different rates of yield or prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.
However, the aggregate amount of bids submitted by a bidder should not exceed the notified amount for each State. The Reserve Bank of India will determine the maximum yield /minimum price at which bids will be accepted.
The results of the auction will be announced on December 29, 2020 (Tuesday) and payment by successful bidders will be made during banking hours on December 30, 2020 (Wednesday) at Mumbai and at respective Regional Offices of RBI.
The State Government Stocks will bear interest at the rates determined by RBI at the auctions. For the new securities, interest will be paid half yearly on June 30 and December 30 of each year till maturity. The Stocks will be governed by the provisions of the Government Securities Act, 2006 and Government Securities Regulations, 2007.
